The Government has issued a regulation on the cost of gas trading in a bid to push the price of industry gas lower, while at the same time giving gas traders and investors a reasonable profit margin. Ministry of Energy and Mineral Resources (MEMR) Regulation Number 58 of 2017 now adopts a 7-11 policy that limits the selling cost of gas traders at a maximum of 7% of gas base price, and sets an IRR cap of 11% for gas infrastructure projects.

Investors are permitted to propose a higher IRR of 12% if the gas infrastructure is built in underdeveloped areas. This regulation is part of President Jokowi's ambition to cut end-user gas prices to below USD 6 per million British thermal units (mmbtu) for seven industrial sectors to strengthen the downstream sector and create a significant multiplier effect on the economy.

Business

Ride-hailing apps enforced

Ministry of Transport Regulation Number PM 108 of 2017 requires ride hailing divers to possess a type A driver's license; submit their vehicles for a roadworthy test; and show affiliation to a legal entity by displaying a sticker.

Penalties for non-compliance includes warnings, fines, and permit suspension/revocation. The Ministry of Transport is to issue warnings in the first 2 weeks of February, before fully enforcing the regulation.

BI has issued a fresh warning about trading in cryptocurrencies like Bitcoin because of the risk of losses to the public and potential threat to financial system stability. Cryptocurrencies are not a legal medium of exchange in Indonesia. BI's regional office in Bali has started working with the local police to curb cryptocurrency transactions.